Study: P-C Market Combined Ratio Level Improves
NU Online News Service, July 30, 4:22 p.m. EDT?A report on the insurance market finds that the industry results improved in 2003 with the combined ratio being cut by more than 6 points to 101.1.[@@]
The report, published by Chicago-based insurance broker Aon Corp., said the industry combined ratio dropped from 107.4 percent in 2002 to 101.1 percent in 2003. Commercial risk combined ratio dropped from 107.7 percent to 103.6 percent.
The report, "An Insurance Market Update, for July 2004," said that almost all property insurance underwriters reported favorable results in 2003 and continue to do so in 2004.
Other items include:
? Commercial property insurance premiums are falling.
? Large court settlements and the specter of increased litigation have left the directors and officers liability insurance market "fragile." However, new entrants and capacity in the market continue to develop.
? The use of transaction liability products is rising, due to an increase in mergers and acquisitions activity in the first half of 2004. Rates are holding fairly steady.
? Health care professional liability insurance claims trends are described as "troubling."
? The market for long term care insurance continues to be problematic.
A complete text of the 29 page report is available online at www.aon.com.
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